SOUTH AFRICAN WEB - Labour Law

SKILLS DEVELOPMENT REGULATIONS
SKILLS DEVELOPMENT ACT 1998
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The Minister of Labour has, after consultation with the National Skills Authority, under section 36 of the Skills Development Act, 1998 (Act No. 97 of 1998), made the regulations in the Schedule.

SCHEDULE
CONTENTS

Definitions
Financial Year
Limitation on administration costs of SETA
SETA finances
Transfer of funds when administration of SETA is taken over
Allocation of grants by SETA
Matters arising under Funding Regulations

Definitions
1. In these Regulations, any word or expression to which a meaning has been assigned in the Act bears that meaning, and unless the context otherwise indicates:

"Act" means the Skills Development Act, 1998 (Act No. 97 of 1998);
"credits" means recognition of achievement of competence of a standard or part of a qualification registered on the National Qualifications Framework;

"Funding Regulations 2000/2001" means the Regulations regarding Funding and Related Issues published under the Act in Government Notice No. R. 103 of 7 February 2000;

"Learnership Regulations" means the Regulations relating to the Registration of Intended Learnerships and Learnership Agreements published under the Act in Government Notice No. R. 330 of 3 April 2001;

"Public Finance Management Act" means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

"Skills Development Levies Act" means the Skills Development Levies Act, 1999 (Act No. 9 of 1999);

"submit" means to serve by hand or registered post or to transmit a communication by electronic mechanism as a result of which the recipient is capable of printing the communication.

Financial Year
2. The financial year for every SETA is the year ending 31 March.

Limitation on administration costs of SETA
3. (1) A SETA may in terms of section 14(3)(b) of the Act not use more than 12,5% of the moneys it receives in terms of the Skills Development Levies Act to pay for its administration costs.

(2) A SETA may, in addition to subregulation (1), use the contributions received from public service employers in the national or provincial spheres of government as contemplated in section 30 (b) of the Act to pay for its administration costs.

SETA finances
4. (1) A SETA must use all moneys received in terms of the Skills Development Levies Act

(a)	administer the activities of that SETA;
(b)	pay the grants which are applied for in terms of these Regulations; and
(c)	if not otherwise specified by the Public Finance Management Act, invest the moneys in accordance with the investment policy approved by the relevant SETA.

(2) Moneys received by a SETA from:

(a)	a training board, training schemes, training levies or any other source contemplated in the Transitional Provisions contained in Schedule 2 of the Act; and
(b)	the Minister or the Department to pay outstanding obligations arising from the Transitional Provisions contained in Schedule 2 of the Act,

must be paid into a banking account referred to in section 14 (2) of the Act.

(3) A SETA must maintain the account referred to in subregulation (2) until all outstanding obligations arising from the Transitional Provisions contained in Schedule 2 of the Act are finalised.

Transfer of funds by Minister if administration of SETA is taken over

5. In order to transfer any funds in a SETA's bank account to the National Skills Fund in terms of section 15(2)(d) of the Act, the Minister may, in a notice issued by him or her in terms of section 15(1) of the Act, require:

(a)	the SETA concerned to identify any bank account or other financial account operated by the SETA; and
(b)	a bank or other financial institution concerned to transfer, in accordance with section 15(2)(d) of the Act, the funds in the account contemplated in paragraph (a) to a bank account opened and administered for that purpose by the National Skills Fund.

Allocation of grants by SETA

6. (1) A SETA must allocate a mandatory grant to an employer if:

(a)	the employer has submitted an application for a grant in the form prescribed in Annexure A to these Regulations; or
(b)	the employer has submitted an application for a grant in the form prescribed in Annexure B to these Regulations.

(2) The mandatory grant to be paid by the SETA in terms of:

(a)	subregulation (1)(a), must be equivalent to 15 per cent of the total levies paid by the employer in terms of section 3(1) of the Skills Development Levies Act during each financial year; and
(b)	subregulation (1)(b), must be equivalent to 50 per cent for the 2001/2 financial year and 45 per cent for the 2002/3 financial year of the total levies paid by the employer in terms of section 3(1) of the Skills Development Levies Act.

(3) A SETA may of any surplus moneys determine and allocate discretionary grants to:

(a)	an employer if the employer has submitted an application for a discretionary grant in the form prescribed in Annexure C to these Regulations; and
(b)	education and training providers and workers if the education and training providers and workers concerned have submitted an application for a discretionary grant in the form prescribed in Annexure D to these Regulations.

(4) The discretionary grants referred to in subregulation (3) must be approved by the SETA before the relevant training programme, initiative or research commences.

(5) Each SETA must prepare and distribute to employers and education and training providers and workers a schedule setting out the dates by which employers and education and training providers and workers must submit their applications for the grants as contemplated in subregulations (1) and (3), including any circumstances under which employers and education and training providers and workers may be granted extensions to the dates stipulated by the relevant SETA for the submission of applications.

Matters arising under Funding Regulations

7. Any financial matter concerning the financial year ending 31 March 2001 must be dealt with in terms of the Funding Regulations 2000/2001.

Commencement
8. These Regulations come into effect on 22 June 2001.